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Detroit has announced that, beginning in mid-2025, residents and businesses will be able to pay taxes and various fees using cryptocurrency, marking a pioneering move among major U.S. cities. 

This initiative is a collaboration with PayPal, leveraging its cryptocurrency payment solutions to offer an alternative payment method for Detroiters, with the aim of increasing accessibility, especially for those without traditional banking.

Mayor Mike Duggan stated, “We are excited to be one of the first major U.S. cities to explore blockchain's civic applications and allow residents to use their cryptocurrency as a payment option.” The adoption of cryptocurrency is expected to simplify transactions, reduce barriers, and make payments more secure, transparent, and efficient.

City Treasurer Nikhil Patel shared the benefits of the initiative, emphasizing its potential to streamline services and create new efficiencies. 

“This new payment platform will increase accessibility for Detroiters who would like to use cryptocurrency; more importantly, the platform upgrade will also make it easier for Detroiters to make electronic payments — including those who may be unbanked,” Patel said. He highlighted that such digital advancements could make city services more inclusive, particularly for unbanked residents who may have greater access to digital assets than to traditional financial services.

The Detroit Department of Innovation and Technology, led by Director Justin Onwenu, is also encouraging blockchain firms and developers to submit ideas on enhancing the city’s digital services. Proposals are due by December 15, 2024, and the city hopes to integrate blockchain solutions for improved transparency and accountability in public services.

With this move, Detroit joins a growing list of municipalities exploring the use of cryptocurrency, solidifying its role as a leader in government-led digital transformation. As of November 2024, three US states — Colorado, Utah and Louisiana — have started to acceptcrypto for payments within the state.